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  • BTC has fallen more than $1,000 in the last 24 hours, establishing a bearish lower high at $12,061.
  • A high-volume break above $12,061 is thus needed to revive the bullish view put forward by a bearish channel breakout seen in the 4-hour chart earlier this week. That would open the doors to $13,880.
  • A move below Wednesday’s low of $10,830 would shift risk in favor of a drop to Tuesday’s low of $9,614.

Bitcoin’s (BTC) price needs to break above $12,061 to mitigate bearish pressure.

The top cryptocurrency by market value is currently trading at $11,200 on Bitstamp, representing a 5 percent drop on a 24-hour basis.

The price drop contradicts the bullish picture painted by technical charts – the hourly chart was reporting a high-volume bullish breakout in the European trading hours yesterday.

Further, some observers called a bull revival following Tuesday’s sharp recovery from $9,600. For instance, renowned cryptocurrency trader and analyst Josh Rager tweeted Wednesday that BTC is looking “extremely bullish.”

Overall, BTC was looking primed for a rally to key resistance at $12,448 yesterday. Instead, prices topped out at $12,061 and fell back to $11,800 earlier today, charting a bearish lower-high pattern.

As a result, a high-volume break above $12,061 is needed to revive the bullish view.

4-hour chart

The falling channel breakout confirmed July 3 ended up creating a second recent bearish lower high at $12,061; the first created June 28 at $12,448.

The failure to post big gains above $12,000 could be associated with the fact that buy volumes (green bars) remained low even after the channel breakout.

A break above $12,061 would revive the bullish view put forward by the bearish channel breakout and open the doors to $13,880.

The move above the latest bearish low, however, needs to be backed by a surge in volumes.

Daily chart

The 5 percent drop seen overnight took the shine off the bullish hammer reversal seen in the previous two days.

That said, prices are still holding above $10,830 – the low of Tuesday’s bullish “marubozu” candle – a bullish continuation candle, which has little or no upper and lower shadows.

So, the probability of BTC invalidating the bearish lower-high pattern with a high-volume move above $12,061 is still high.

A break below $10,830 would shift risk in favor of a drop to Tuesday’s low of $9,614.

Disclosure: The author holds no cryptocurrency at the time of writing

Ball image via Shutterstock; charts by TradingView

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.